Other Publications in the CECD Series Energetics Science and Technology in Central Europe Invited Editor: Ronald W. Armstrong Series Editors: James M. Short, Robert A. Kavetsky, and Davinder K. Anand ISBN 978-0-9846274-3-1 Simulation -Based Innovation and Discovery. Energetics Applications Edited by Davinder K. Anand, Satyandra K. Gupta, and Robert A. Kavetsky ISBN 978-0-9846274-2-4 Energetics Science and Technology in China James M. Short, Robert A. Kavetsky, Michael G. Pecht, and Davinder K. Anand ISBN 978-0-9846274-0-0 Other Publications in the CECD Series From Science to Seapower. A Roadmap for S&T Revitalization. Postscript 2010 Robert A. Kavetsky, Michael L. Marshall, and Davinder K. Anand ISBN 978-0-9846274-1-7 Training in Virtual Environments. A Safe, Cost-Effective, and Engaging Approach to Training Satyandra K. Gupta, Davinder K. Anand, John E. Brough, Maxim Schwartz, and Robert A. Kavetsky ISBN 978-0-9777295-2-4 From Science to Seapower. A Roadmap for S&T Revitalization Robert A. Kavetsky, Michael L. Marshall, and Davinder K. Anand ISBN 978-0-9846274-1-7 Rare Earth Materials Insights and Concerns CENTER FOR ENERGETIC CONCEPTS DEVELOPMENT SERIES Editorial Board Davinder K. Anand, CECD, University of Maryland, College Park, MD James M. Short, CECD, University of Maryland, College Park, MD Don DeVoe, CECD, University of Maryland, College Park, MD Bryan Eichhorn, University of Maryland, College Park, MD Satyandra K. Gupta, CECD, University of Maryland, College Park, MD Michael G. Pecht, CALCE, University of Maryland, College Park, MD Michael R. Zachariah, CECD, University of Maryland, College Park, MD ENERGETICS SCIENCE AND TECHNOLOGY SERIES Editorial Board James M. Short, CECD, University of Maryland, College Park, MD Robert A. Kavetsky, ETC, Waldorf, MD Davinder K. Anand, CECD, University of Maryland, College Park, MD Rare Earth Materials Insights and Concerns Michael G. Pecht Robert E. Kaczmarek Xin Song Dylan A. Hazelwood Robert A. Kavetsky Davinder K. Anand Center for Energetic Concepts Development Series University of Maryland, College Park, Maryland Cover design by Dylan Hazelwood and Ania Picard Library of Congress Control Number: 2012937664 The book contains information from authentic and highly regarded sources. Reprinted material is quoted and credit is given when appropriate. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the authors and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. The views of this book are solely the views of the authors. No opinions, statements of fact, or conclusions contained in this document can be properly attributed to the Department of the Navy, the Office of Naval Research, or its contracting agencies. Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval system, without prior permission in writing from CECD. CECD consent does not extend to copying for general distribution, for promotion, for creating new works, or for resale. Specific permission must be obtained in writing from CECD for such copying. Direct all inquiries to: CECD Department of Mechanical Engineering 2140 Glenn L. Martin Hall University of Maryland College Park, MD 20742 Ph.: (301) 405-5205 http://www.cecd.umd.edu 2012 CECD International Standard Book Number 978-0-9846274-4-8 Printed in the United States of America Printed in Southern Maryland Foreword This book provides insight into the current status of the global supply chain of rare earth elements, and addresses their availability and processing for the commercial and defense sectors of our national economy. Particular attention is given to the role of China since it is currently the largest worldwide provider of these elements. Recent developments in the availability of some of these materials has heightened the concern of policy makers regarding the application of these special elements in current and future systems. The status of these materials vis-à-vis U.S. considerations is reviewed as many of these materials are critical components of commercial and defense-related products. It is important that our scientists and engineers in the technical community possess an awareness of the issues relating to strategic materials such as these. The purpose of this book is to continue the dialogue on the subject of rare earth elements which are essential materials used in the support of national security and a vibrant commercial marketplace. John W. Fischer, Ph.D. Director, Defense Laboratory Office Preface and Acknowledgements Rare earth elements (which are seventeen elements on the periodic table) are used in an ever-growing variety of applications that are key to our modern technology. In addition they are essential for a wide variety of defense technologies that are critical to national security. Global demand for rare earth materials is projected to grow, fueled in part by continued development and deployment of emerging energy technologies, and as a result, a global shortage of rare earths is anticipated in the near future. Although the United States has 13 percent of the world’s exploitable reserves, nearly all rare earth materials used in the country are imported from China. In contrast, China has only 48.3 percent of the world’s rare earth reserves, yet accounts for more than 97 percent of global rare earth production. Furthermore, China has been reducing its export quotas in order to satisfy growing domestic demand, and is placing further emphasis on strengthening its vertically integrated supply chain in the rare earth industry by focusing on downstream rare earth products. Prices for rare earths experienced a dramatic increase throughout the first half of 2011 – for instance, prices for some key REEs, such as europium and dysprosium, increased by more than eightfold from January to August. Several key factors contributed to this significant increase. An incident in 2010 between Japan and China resulted in rare earth exports to Japan being stopped for a month, indicating to the rest of the world that China’s supply could be constrained at any time. During the same period the Chinese government continued to reduce export quotas, and the country’s rare earth producers began to account for the cost of excessive resource exploitation and environmental damage through increases in government taxation. viii Preface and Acknowledgements To address a possible rare earth shortage crisis, the United States needs to actively pursue policies to ensure supply security. In addition to developing domestic resources and stockpiling specific rare earths, we must support the development of new technologies for their mining and processing. We must also develop more efficient manufacturing and recycling methods for consumer goods containing rare earths, investigate synthetic rare earth substitute compounds, and continue research into rare-earth-free technologies. The authors take particular note of the special contributions made by Xin Song in researching several aspects of this subject. We also acknowledge the copyediting done by Eric Hazell and Ania Picard for the overall production of this book. We would also like to thank Elan Moritz for reviewing the book and John Fischer for many helpful discussions during its development. This book is the result of a study performed to create a body of knowledge, and is not intended to be an original work, but rather a compendium of open literature. Its purpose is to provide timely information in sufficient detail to support the development of appropriate policy decisions, as well as to provide a resource for U.S. commercial concerns. The book provides an insight into the current status of availability, processing and uses of rare earths in the world. Particular attention is given to the role of China, since it is by far the largest provider of these elements worldwide. The status of the U.S. is also reviewed, as are the implications of current and future policies relating to rare earths. The Authors College Park, MD Author Biographies Davinder K. Anand is Professor of Mechanical Engineering and Director of the Center for Energetic Concepts Development, both at the University of Maryland, College Park. He received his doctorate from George Washington University in 1965. Dr. Anand was Senior Staff at The Applied Physics Laboratory of the Johns Hopkins University from 1965-1974. From 1991-2002, he chaired the Department of Mechanical Engineering at College Park. He has served as a Director of the Mechanical Systems Program at the National Science Foundation, and his research has been supported by NIH, NASA, DOE, DOD, and industry. He has lectured internationally, founded two high technology research companies (most recently Iktara and Associates, LLC), published three books and over one hundred and seventy papers, and has one patent. He is a Distinguished Alumnus of George Washington University, and was awarded the Outstanding and Superior Performance Award by the National Science Foundation. Dr. Anand is a Fellow of ASME and is listed in Who’s Who in Engineering. Dylan A. Hazelwood is a Systems Analyst with the Center for Energetic Concepts Development, in the Department of Mechanical Engineering at the University of Maryland. He received a Bachelor's degree of Applied Computing from the University of Tasmania, Australia. His main expertise is in information technology systems and development. As Assistant Director of Information Technology for the Department of Mechanical Engineering, he was involved in information technology infrastructure development and management, high performance computing cluster development and implementation as well as development and implementation of distance learning technologies. Since joining the CECD in 2009, he has worked in the areas of energetics informatics and rare earth materials research. x Author Biographies Robert E. Kaczmarek is a senior staff member to the Technical Director of the Naval Surface Warfare Center, Indian Head Division (NSWC-IHD).